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Transport tax vs. fuel levy: who stands to gain and who might lose?

Published

01/07/2025, 11:16

Transport tax vs. fuel levy: who stands to gain and who might lose?

The year 2025 has arrived, which means that new rules have come into force, namely Kyrgyz citizens will start paying 1 KGS per liter of gasoline.

At the end of 2024, during a session of the Jogorku Kenesh, the head of the Tax Service, Almambet Shykmamatov, proposed to cancel the transport tax in Kyrgyzstan due to the introduction of the new fuel levy. The "Akchabar" editorial office decided to calculate whether the new levy would be more beneficial for the budget than the old tax.

According to the Antimonopoly Service, Kyrgyz citizens consume 3,288 tons of fuel daily, equivalent to 3.288 million liters. This means the budget will receive 3.288 million KGS per day. Over a month, this amount will grow to 98.6 million KGS, and over a year—to 1.183 billion KGS.

For comparison, according to the Ministry of Finance, transport tax revenues amounted to 1.198 billion KGS over the first 11 months of 2024. This means that the income from the new levy will be slightly lower than from the old tax.

Previously, the transport tax was calculated based on the engine size of the vehicle. Now, it depends on how frequently the owner uses the car. On the one hand, this seems fairer—those who drive less will pay less. On the other hand, the new levy could disproportionately impact ordinary people, especially those who must commute daily to cities with job opportunities but lack accessible public transportation.

At the same time, owners of several vehicles stand to benefit. They will now only pay for the fuel they use, rather than being taxed for each car in the garage.

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